Prevent recurrence of’LH speculative class’ major accidents…政, handles management evaluation of public institutions

In the future, if an employee of a public institution hits a’big accident’ such as a real estate speculation by the employees of the Korea Land and Housing Corporation (LH), all employees of the public institution will not receive incentives. In the case of a serious deviant behavior enough to incur public resentment, the entire organization is responsible for the management and supervision of individual employees’ misconduct.

According to the government authorities on the 21st, as one of the measures to prevent the recurrence of the LH incident, a plan to improve the management evaluation system of public institutions including such contents is being reviewed within the government.

A government official said, “In the case of LH, it is basically an act of aberration by individuals, but it is correct to put heavy responsibility on institutions that have not properly managed it, and we are looking for ways to improve the management evaluation system of public institutions in this direction.” Said.

This means that the management evaluation system of public institutions will be changed so that not only will the individual be held accountable in the case of serious deviations such as the LH incident, but also the relevant public institution will suffer a great disadvantage.

In the worst case, if a public institution fails in management evaluation, the head of the institution is dismissed, and executives and employees are not paid incentives. In some institutions, incentive pay accounts for more than 10% of total remuneration, so the reduction in incentive pay is a significant economic blow to employees.

To this end, the government is first considering ways to increase the points on ethical management or publicity when evaluating the management of public institutions.

In particular, the ethical management division, which is directly related to the LH incident, is only 3 points out of 100 points, which is to compensate for the problem that does not significantly affect the results of management evaluation.

In the case of LH, for example, even though LH received the D grade, which was a failing point in the ethical management sector, in the management evaluation of public institutions last year, the overall grade was A grade, the highest grade. Although the management evaluation team’s comments on corruption and ethical issues continued every year, the reason that it was able to receive the A3 grade for three consecutive years was because the additional points for ethical management were too low.

Items for realizing social values ​​such as’Equal Opportunity and Social Integration (2 points)’ can also be areas that can increase the number of points.

In the event of a material deviation, it is also considering a plan to deduct management evaluation scores from more indicators.

For example, if an LH-class incident occurs, leadership scores can be reduced by not only ethical management, but also by taking responsibility for poor management and supervision of employees.

The government differentially pays management evaluation incentives to institutions with a grade of C or higher for each category, such as comprehensive grade, business management, and major business. If the management evaluation grade falls below a certain level due to a major deviation, you may not be able to receive any incentives at all.

In the case of LH, which was controversial due to speculation in the new city, the possibility of failing last year’s management evaluation, which is currently underway, has increased. According to the 2019 management evaluation conducted last year, the incentives paid are in danger of being redeemed.

The government is in a position that if LH employees’ real estate speculation is confirmed to be true, it will reflect it in the ended management evaluation and lower the existing evaluation grade, and return the incentives.

LH employees have received 7.87 million won in 2017, 8.84 million won in 2018, and 9.92 million won in 2019 as incentives for management evaluation.

The government plans to finalize a plan to improve the management evaluation system of public institutions as early as this week and at the latest next week.